S&P affirms Concho after note add-on

Standard & Poor's said it affirmed its BB+ senior unsecured debt rating on Concho Resources Inc.'s 5½% senior unsecured notes due 2023 after the company announced it will seek to add on $500 million to the existing $700 million notes outstanding.

This brings the total issue amount to $1.2 billion.

The recovery rating on the notes is 4, indicating an expectation of average (30% to 50%) recovery in the event of a payment default.

The ratings reflect S&P's assessment of the company's "fair" business risk, "significant" financial risk and "adequate" liquidity.

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